EQUITY INVESTMENT

12 Months Ended

Jul. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

On February

15, 2018, the Company announced the formation of TH2Connect, LLC (“TH2”), a joint venture with Tourism Holdings Limited (“

thl

”). TH2 was formed to own, improve and sell innovative and comprehensive digital applications through a platform designed for the global RV industry. TH2 offers a variety of products focused on enhancing the enjoyment, safety, connectivity and convenience of RV ownership and use.

The Company and

thl

each have a 50% ownership position in TH2 and equal representation on the board of directors of TH2.

The Company contributed cash totaling $46,902 to TH2 in early March 2018 while

thl

contributed various assets with the same approximate fair value. The Company’s initial investment in TH2 was funded entirely from cash on hand. Additional capital investments were made in TH2 by both Thor and

thl

of $6,500 and $3,500 during fiscal 2019 and fiscal 2018, respectively. In accordance with the operating agreement between the parties, TH2’s future capital needs will be funded proportionally by

thl

and the Company. Both

thl

and the Company loaned TH2 $2,157 in fiscal 2019 for working capital needs and that amount is included in Other assets on the Consolidated Balance Sheets as of July 31, 2019.

In July 2019, TH2 was rebranded as “Togo Group”.

The Company’s investment in TH

2 is accounted for under the equity method. The Company’s share of the gains or losses of this investment are included in Other income (expense), net, in the Consolidated Statements of Income and Comprehensive Income. Losses recognized during fiscal 2019 and fiscal 2018 were $8,798 and $1,939, respectively.